The Real Deal Miami

Tampa island apartments go for $125,000 per unit

The 40-unit rental complex in the Davis Islands area changed hands for $4 million

September 24, 2016 03:00PM

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The Place at Davis Island

The Place at Davis Island

Marcus & Millichap reported the sale of the leasehold interest in a 40-unit apartment property in Tampa for $125,000 per unit in an off-market deal.

The buyer, a private investor based in California, paid $4 million for The Place at Davis Island, which consists of 40 one-bedroom apartments with 700 square feet of rentable space. The seller was a Tampa-based partnership.

The apartment property is located at 401 Danube Avenue in the popular Davis Islands area of Tampa, a two-island neighborhood just south of the downtown district, overlooking the Port of Tampa.

Ten of the 40 units are renovated apartments with updated kitchens, new flooring and fixtures, and stacked washer-dyers. The buyer plans to renovate the other 30 units and increase the below-market rents.

Casey Babb, vice president investments in Marcus & Millichap’s Tampa office, and Tyler Leeson, first vice president investments in the firm’s Newport Beach office, put the off-market deal together.

“The Place at Davis Island was a unique transaction for Tampa in that it was subject to a 99-year ground lease which was put in place in the 1970s,” Babb said in a written statement. He also stated that the seller had owned the leasehold interest for nearly 20 years and plans to trade into a larger asset.